Boma calgaryfebruary 2017 – alberta utility market updates – boma calgary electricity deregulation

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– The government is also planning to shift away from the current energy-only type of market structure, where a real-time supply and demand relationship drives electricity prices (and helps to contribute to Alberta’s sometimes volatile price swings). There is only one other market in North America that uses this model: our fast-talking step-cousin to the south, Texas. electricity production In the market’s current form, there is little financial incentive for electricity generators to provide a lower-carbon solution.

– The proposed market structure is called a capacity market, and it is slated to be in effect by 2021, though the transition is underway this year. Similar to an energy-only market, private electricity generators are relied upon to sell electricity. However, power generation volumes with specific carbon emission requirements are auctioned off so that all parties have price certainty for produced (available) electricity and on-demand (future) generation. mp electricity bill payment online bhopal During the transition period from the energy-only market to a capacity market, the government has suggested that a residential rate cap of 6.8 cents per kilowatt-hour will be mandated for those on a regulated rate option for the next four years (this rate is for electricity only and does not include transmission and distribution, riders, admin fees, etc. – the ‘regulated’ charges on your bill). gas leak los angeles california Consumers will still be able to shop around for competitive, contracted electricity rates – which are currently much less than the proposed rate cap.

– Based on a desired/planned/mandated phase-out of coal fired electricity generation in the province by 2030, one could reasonably anticipate that the cost of electricity will increase beyond 2021. The government predicts that an estimated $25B of new investment is required for infrastructure to transition towards a less carbon-intensive electricity grid, while serving an ever-increasing population.

– That said, the details on how to make this transition have not yet been resolved, so the idea of a short-term capped electricity price does provide some additional certainty through this transition. For reference, Alberta’s 2015 grid composition included 9% renewables and 40% natural gas (with the remainder as coal), whereas the 2030 target includes 30% renewables and 70% natural gas.

– An accelerated retirement schedule has been proposed for a handful of coal-fired power plants that were expected to operate beyond 2030. gas under 3 dollars The Alberta government has been working with electricity generators to resolve cancelled power purchase agreements (PPAs) in order to drive towards the lower-carbon objectives outlined in the provincial Climate Leadership Plan. If you’re brave, ask Mayor Nenshi for details on PPAs.

– Energy conservation incentive program details are slowly being released via a new provincial agency known as Energy Efficiency Alberta. a gas mixture is made by combining For the commercial real estate market, the agency has announced a pending rebate program that has few details but covers “lighting, heating, cooling and hot water systems.” Keep your eyes here for further announcements: https://www.alberta.ca/energy-efficiency-alberta.aspx